pls answer 12-15
to the Eng + 20M. (c) U= $18,700 + 30M +.40H+.40B. (d) U = $27,700 + .40A + .40B. (a) $3.00 10. Usin allo 11 Use the following information for questions 5 through 15.00%K al deparste problem Barnes Company has two service departments and three production departments, each producing a separate product. For a number of years, Barnes has allocated the costs of the service departments to the production departments on the basis of the annual sales revenue dollars. In a recent audit report, the internal auditor stated that the distribution of service department costs on the basis of annual sales dollars would lead to serious inequities. It was recommended that maintenance and engineering service hours be used as a better service cost allocation basis. For illustrative purposes, the following information was appended to the audit report. Need to 2 Service Departments Production Departments Maintenance Engineering A B Total Maintenance hours used 400 800 200 200 1600 Compute Engineering hours used 400 800 400 400 2000 Department costs $12,000 $54,000 $80,000 $90,000 $50,000 alsuage percentages 5. Using simultaneous equations, what would be the reciprocal costs for the Engineering Department? allocato Waing die direct med few allocation. wow wowoch. Martense Departament corn werda Ve to the Copiacering Depo? (A) S3.000 b) SOS1.500 10. Using the direct method of cost nitoestion, wat amount of conserve Department cost woela me 36.000 allocated to Depenente (b) 3 (E52 TVL (3 9 , MI (2) $3,000 11. Using the direct wethod of cost allocation, what most of Enginee.com would be located to Depton ? (a) 520.800 (6) $27,000 (c) SO d) 534.000 The Maintenance Department renders 25% (400/1600) aFlis serviees to the Eaglueering Department. The Engineering Department vender 2017 (400/2000) of in services to the Maintenance Department. Therefore, for questions 12 through 15 alineate Maintenance Department costs first. 12. Using the step-down cthod of cost allocation, st mount of water cost world be located tu Department B? (a) $6,000 (6) $1,500 (0) $1.000 a $9,500 13. Using the step-down inetud of cost allocation. What aboul of Engincering outs would be allvate to the Maintenance Department? (a) $10,800 (b) S9.500 () $3.000 () SO 14. Using the step-down method of cost allocation, what amount of Engineering costs would be able to Department ? (a) $9,000 (b) $14,250 (0) $9.500 (d) $6,000 15. Using the step-down method of cost allocation, what is the total amount of service departe allocated to Department A? (a) S38,000 (b) $37.500 (c) $40.000 (d) $54.500
